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A close-up of an Iron Dome battery seen from below, pointing towards the sky.

The tubes of an Israeli Iron Dome battery on display in Tel Aviv, Israel, in 2020. Israel is spending $5.2 billion from an American aid package approved by Congress last year to fortify its missile interception systems, the Israeli Defense Ministry said Jan. 16, 2025. (Lisa Ferdinando/Defense Department)

Israel will upgrade the layered system shielding it from aerial attacks under a new contract made possible by American funding, according to a statement Thursday by the Israeli Defense Ministry.

The $5.2 billion deal with defense technology firm Rafael Advanced Defense Systems is the first of its kind under a U.S. aid package approved by Congress last year.

Israel will strengthen the Iron Dome and David’s Sling systems as a result of the contract, which the ministry announced Thursday on X, formerly known as Twitter. The deal also covers work on Iron Beam, a laser system Israel is developing to shoot down missiles.

The news comes amid talks of a ceasefire with Hamas to halt the fighting in Gaza. Negotiations were delayed by a “last-minute crisis,” Israeli Prime Minister Benjamin Netanyahu said Thursday.

Iron Dome was designed to defend against short- and medium-range rockets and missiles as well as drones. It demonstrated “exceptional performance” during the war with Hamas, the Defense Ministry statement said.

The U.S. has been a key partner in the production of Iron Dome, in addition to helping develop and produce the Arrow Weapon System and David’s Sling, which target medium- to long-range missiles, the ministry said Thursday.

Maj. Gen. Eyal Zamir, director general of the Israeli Defense Ministry, thanked the United States, which he credited with making the contract possible through the aid package it provided.

The defense system upgrades are part of a larger $8.7 billion U.S. aid package Israel secured last fall to support its ongoing military efforts.

Israeli forces continue to use the defense systems against attacks from Iran-backed Houthi rebels in Yemen.

In October, U.S. Defense Secretary Lloyd Austin deployed a Terminal High Altitude Area Defense, or THAAD, missile battery and a crew of military personnel to assist Israel against incoming fire.

A defense official confirmed to Stars in Stripes in late December that THAAD had been used in the region recently but did not provide further details.

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Lara Korte covers the U.S. military in the Middle East. Her previous reporting includes helming Politico’s California Playbook out of Sacramento, as well as writing for the Sacramento Bee and the Austin American-Statesman. She is a proud Kansan and holds degrees in political science and journalism from the University of Kansas.

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